Three not the case when taxes are

Three separate administrative units are facing the difficult situation of how to raise revenues. The county is one of the only nine localities in the state that does not income tax. Two city governments and one county government. At least two out of the three must agree on a tax for one to be implemented county wide. State property tax freeze passed 20 years ago complicates the situation even further. Several forms of locals’ taxes are possible, each with its own advantages and disadvantages.Evaluate each option that the mayor is considering. What are the strengths and weaknesses of each?1.      Continue to cut services-, Public Safety, libraries and parks, delaying or cancelling city projects, layoffs. Such payments can grow enough to outpace all other city expenses. Reducing non-personnel costs is not sufficient. Maintenance of City building, parks and roads are2.      Rely on property tax – The property tax is more stable and reliable revenue source than other taxes. A heavy reliance does not equate to a high burden of other major revenue sources, such as sales and income taxes because property is less likely to be affected by short term economic fluctuations. Property taxes are difficult to evade, therefore, citizens who are property owners share the costs of government. Property owners are faced with a bill that shows their entire liability. This not the case when taxes are collected in small amounts as part of purchases or withheld from pay. On the other hand, relying on the property taxes can be inconvenient and expensive. If the city continues its dependency on property taxes is likely to have its revenue reduced. The mayor has an incentive to buy votes by promising to reduce property taxes, now the city will be forced to reduce services as a result, the mayor will suffer at the polls. I do not think this is a good decision, because when one level of government plans that another level can blamed for, the public accountability is gradually destroyed.3.   Hope that federal/state governments will change their policies and increase intergovernmental aid. These incentives. The government can assume responsibility by providing certain services to the city of “”. The government can agree to fund the police department, examples One argument for eliminating such funding is that federak government can relieve the city of the cost of a substaintial and increasing portion of its budget. The trade off for issuing help can eliminating other state assistance programs. Citizens may think that receiving grants is justified because the city is exempt from local taxes. 4.      Search for ways to make government more efficient A good government handles its resources of all kinds with transparency and efficiency, especially financial resources, informs and responds to citizen control. A more efficient government and the elected official are honest, plan for the future, does not improvise, does not give mere answers and they look beyond the urgent, considering medium and long term policies. 5.      Adopt some version of local income tax- Paying local taxes, those taxes can help pay for school. “city name” has less to work with; lower property taxes. Voters can approve a local tax to help stabilize the city’s finances and reject an increase in the property tax. Saylor Park, Landis, and Fleming County are all facing budget shortfalls and need increased revenue. The state legislature has made is clear that counties unwilling to adopt local taxes will be placed “at the end of the budgetary line”. Despite this ultimatum political partisanship has prevented the implementation of an income tax in Fleming County. Several attempts at bipartisanship have failed due to the resistance from the county commissioner. It is important to generate realistic expectations about the future and any challenges that may arise in the management of the of implementing a budgetary reform. Are there other strategies that Mayor Myers might employ? Are there other legitimate tactics that might win support from the other local governing bodies? Are there longer-term strategies that might be pursued, or that the mayor might threaten to pursue, to accomplish his purposes? Be creative in developing new options.Strategic plan budge 3-5 years.Goals: defining the direction of the city in the long term through the formulation of objectives and action plans. Coordinate, evaluate and control the set of action plans that have to be carried out in an economic year, to achieve the objectives defined in the strategic planning. It is necessary to make maximum level of concreteness in revenue and expenses as precise as possible in the budgetWhat should Mayor Myers do? Formulate a recommendation of one or more actions for the Mayor to take in order to solve this budgetary issue.The city could create new authorities, like a public budgetary authority run by independent professionals who could help the city deal with their situation. Such professionals can help determine if the city’s unfunded liabilities are a result of unwillingness or inability. Cutting on services, such as funding pensions can bring other sources of capital and changes to the the budgetary constraints. This idea would require a lot of political will from the mayor, which is often in short supply on such a tricky issue